Final disbursement.Preparation of WA(s) for final disbursement(s) of project loan
and tranche disbursement of a policy-based loan should be closely coordinated
between ADB and the borrower and/or EA, particularly if the remaining unutilized
balance is expected to be fully utilized.
4.17 Winding-up period.10
The borrower may make withdrawals from the loan account
for expenditures incurred on or before the loan closing date. Expenditures incurred
after the loan closing date will not be financed under the loan. ADB may allow up to
4 months after the loan closing date (i) for the borrower’s WAs to be submitted to ADB
for expenditures incurred on or before the loan closing date, and (ii) for the borrower
to fully liquidate expenditures incurred on or before the loan closing date. After the
winding-up period, WAs, including requests for liquidation, will not be accepted.
Extension of the winding-up period, on an exceptional basis, may be approved by ADB
(Section 4.14).
4.18 Within 2 months after the winding-up period for submission of documents, the
borrower should fully refund any outstanding imprest account balances to ADB. If the
borrower fails to fully refund such balances, ADB may, among other corrective actions,
decide not to allow the use of the imprest fund procedure under the borrower’s new
projects until such time as the refund is received.
4.19 Payment of final audit fees.If external auditor’s fees are financed by ADB, it is
best practice to pay the audit fee before the loan closing date after completing the
final audit (Section 4.15). When audit fees under a project need to be paid after the
closing date, special arrangements may be required for payment of the final audit fee
from the loan account. External auditor’s fees for the final fiscal year may be disbursed
from the loan account, under condition that (i) the borrower signs a contract for the
final audit prior to the loan closing date, and (ii) the contract is a lump-sum or fixedprice contract that requires completion
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of audit within 6 months after the loan
closing date. If the audit work cannot be completed during the winding-up period, and
the final audit fee will be paid through the escrow account, full supporting documents
should be attached to the WA (see Appendix 4D for more details).
4.20 Refunds.All refunds must be paid to ADB’s accounts at its depository banks with
payment details indicating (i) references such as loan number, (ii) description or
nature of the refund, and (iii) currency and amount of refund. The borrower and/or
EA should send advice to ADB’s Treasury Services Division (TDTS) and CTLA once
a refund is made.

Borrowers are required to submit AFS within 6 months

9:06 AM    

Borrowers are required to submit AFS within 6 months
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after the close of the
fiscal year or the loan closing date, whichever comes earlier, to sector division or
resident mission for their review and necessary action. In accordance with ADB’s
Public Communications Policy,
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AFS for sovereign projects need to be posted on the
ADB website.
Follow-Up Action for Audit Findings of a Serious Nature
4.27  In case of audit findings of a serious nature—such as misappropriation or diversion of
funds, nonsubmission of supporting documents, or use of funds for nonproject-related
activities—suitable action shall be immediately initiated or taken by the borrower or
the EA, under intimation to the auditor and ADB.
Delay in Submission of Audited Project Financial Statements
4.28  In the event the AFS are not received by the due date, ADB takes follow-up actions in
accordance with ADB regulations, instructions, and other rules.
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Retention Period of Supporting Documents
4.29  The borrower is required to retain all records (e.g., contracts, purchase orders,
invoices, bills, receipts, subloan agreements) evidencing eligible expenditures and
to enable ADB’s representative to examine such records. Such records
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should be
retained for at least 1 year following receipt by ADB of the final AFS or 2 years after
the loan closing date, whichever is later. Borrowers are responsible for ensuring that
document retention also complies with their government’s laws and regulations.
Disbursement under Suspension of Loan
4.30  If the loan is fully or partially suspended, disbursement is also suspended to the extent
the loan is suspended.
4.31  The suspension of withdrawal does not affect disbursements committed through
outstanding letters of credit under ADB’s commitment procedure, as the commitments
are irrevocable and ADB is obliged to disburse even after the loan has been suspended.
4.32  During the suspension, no additional funds will be advanced to the imprest account
(Section 10.31).